BNY Mellon High Yield Municipal Bond Fund Q4 2025 Commentary

BNY Investments63 FollowersFollow5ShareSavePlay(11min)CommentsSummaryThe municipal bond market extended its rally in the fourth quarter, outperforming U.S. Treasuries and corporate bonds, supported by relatively favorable technicals and two additional 25 bp Fed rate cuts.For the quarter ended December 31, 2025, the Fund's Class I shares returned 1.73%, while the Bloomberg U.S.

Municipal Bond Index returned 1.56%.The lowest investment grade segment delivered relatively stronger performance, reflected by the Bloomberg Municipal BBB Index return of 1.77%, outperforming the Bloomberg Municipal AAA, AA & A Index returns.Looking ahead, 2026 is expected to be another heavy supply year driven by growing needs to fund aging infrastructure, higher cost of capital expenditure, and waning of pandemic-aid.Our duration stance is neutral-to-modestly long versus our benchmarks, with a belief that bonds maturing 15 years and beyond offer attractive yield in a relatively steep curve environment. Torsten Asmus/iStock via Getty Images Market Review The municipal bond market extended its rally in the fourth quarter, outperforming U.S. Treasuries and corporate bonds, supported by relatively favorable technicals and two additional 25 bp Fed rate cuts. Despite two consecutive quarters of strength, municipalThis article was written byBNY Investments63 FollowersFollowBNY Investments is a global, multi-specialist asset management group, underpinned by the strength and resilience of BNY, with its 240-year history and experience. Managing nearly $2 trillion in assets, they offer investment solutions developed and managed by talented asset class specialists, each with distinct philosophies and proven approaches. Note: This account is not managed or monitored by BNY Investments, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use BNY Investments' official channels.